ECONOMY. '

Northern Advocate, 11 August 1888, Page 2

ECONOMY.

WHANGAEEI AND KAMO RAILWAY. Our readers will have noticed the lengthy and spirited discussion which has, for some time past, been going ' on in respect to our little railway, and , the supposed bearing of the recent • changes on Mr Vaile's system. Under the head of " The Whaugarei andKamo [ Railway; Great Success of the New i System," Mr Vaile writes to the New New Zealand Herald as follows : — ! Sir, — The Gazette to hand to-day contains the l railway returns for June, and enables me to compare the working of the old and new systems for a period of eight weeks under somewhat ' equal conditions as -''regard mineral traffic, [ though that is still in favour of the department, ; and against me. It will be seen that in every particular my system is proved Jto be a most pronounced success; The comparisons arefor the two four-weekly periods ending 26th May and 23rd June, in the ■ years 1887 and 1888 :— 1888— Passengers (number of trips) . . 2017 1887- „ •■ „ „ .. 1518 Increase .. .... .. 499 Equal to 32.9 per cent. (What about the want ! ' of population f) tons. 1888— Merchandise, tonage .. „ 647 1887- „ „ „• .. 427 1 Increase .. .. , r .. 220 , Equal to 51.5 per cent. : 1888— Mineral, tonnage .. „ 2056 1887- „ „ .. ..- .. 2149 \ Decraase . . . . . . . . 93 » 1888— Gross revenue . . . . £401 6 8 \ 1887— „ „ .. , .. , 344 5 1 Increase .. .. .... £75 1 7 1888— Expenditure .. „ £242 6 4 ; Decrease .. .. .. £128 15 10 J ; 1888— Net revenue . . . . £159 04^ 1887— During this period there M was no net revenue, but ■ j . the working expenses exI ceeded the entire earnings by .. „ .. 26 *ZJ^H notwithstanding the fact that they had moiSH coal traffic to work upon. This equals £18sV . 17s 5d of net revenue for eight weeks, instead . of £81 for a year, as Mr Mitchelson led the House to believe. 1 I think it would be hardly possible to wish for a more complete success in every respect than this little line shows my system to be. It is very evident that in our railways alone we have the means of getting out of our financial difficulties if we would only administer them 1 on a common sense plan. The Whangarei line is the only one in the colony that shows steady progress The total railway revenue has fallen £16,363 during twelve weeks, and yet the estimates for the year are based on the assumtion of an increase of £45,060. Now these figures are quite correct, ; but the reasons assigned are mis[t leading, and the deduction utterly false. It is not our intention at the present time to argue for or against the Vaile System, but we do wish to correct the false impressions which seem to prevail on this matter, and \ to show the direction in which, our present extravagent management may be both simplified and economised, • If we understand the Vaile System aright, the contention is, that by a great reduction in fares and rates, traffic will be so increased that the revenue will more than cover the reduction. Now the system on which the Whangarei and Kamo Eailway is worked does not at all depend on Mr Vaile's theory, nor can it, in any slight degree, be likened to it. Its success wholly and solely depends on the reduction of the working expenses; and, to carry out this, the complicated fares and tarifE have been reduced to a single rate for both passengers and goods, with the result, as Mr Vaile shows, of a decrease in the expenditure for eight weeks in 1887 and 1888 of £128 15/10, and is not the result of increased traffic. Upon enquiry we find that the increase in the number of passengers and the tonnage of merchandise has nothing whatever to do with the "New System," but is due entirely to outside causes. The increase in passengers is due to the great number of gumdiggers going to the Puhipuhi field, and to the low steamer fares. The increase of merchandise is caused by the large quantity of gum shipped this year, amounting roughly to 200 tons for the two months against 100 tons for the same time last year, and also because the steamer freights are now so low that they have cut out the schooner trade to the Town Wharf. The whole of this trade is now taken from the steamers at the Eailway Wharf. This increase of traffic on the railway is therfore, due to the competition of the steamer rates and fares and the opening of the Puhipuhi gumfield, and has positively nothing to do with the. " New Kailway System." If to this we add the great decrease in the working expenses, the true solution of the favourable result over which "Mr Vaile is so jubilant is arrived at. The whole pith and marrow of Mr

Vaile's scheme is the Inducing; of far* and rates. Now the I&res and rate of the Whangarei line hair not bee reduced; if anything, they ai slightly raised. That the new systen as carried out at Whangarei, i a success is now beyond questioi Take any other short line wit a small traffic, and there id ho con: parison. Whangarei spends £67 for every £100 earnei Kawakawa „ £82 „ £100 „ Nelson „ £90 „ £100 „ Picton „ £109 „ £100 „ The only one of the above sectior with which we are familiar (exceptin Whangarei) is Kawakawa; anc to an outsider, it would appear tha this section should give a bette result, as it is nearly level, and th bulk of the passengers and merchan disc travel the whole length, insteai of only a small part of it, as a Whangarei. There is one othe: matter connected herewith on whicl false impressions prevail, and wMcl we wish to correct. Not only has th( government not selected this smal issolated line on which to try Mj Vaile's system, but the changes wen Hot even suggested by the Government, and the Public Works Department are innocent of its conception We sympathise with Mr Vaile, and admire his talent and pluck, but in this matter he is in error.